May 18, 2022

Africa Energy eyes early production system on Block 11B/12B

Announcing its financial and operational results for the three and nine months ended September 30, 2021, Africa Energy provided an update on Block 11B/12B, offshore South Africa

Africa Energy holds a 4.9% effective interest in the Block 11B/12B exploration right. (Image source: Adobe Stock)

On block 11B/12B, Africa Energy and its joint venture partners are considering an early production system (EPS) for a gradual development of the Fairway Paddavissie.

The joint venture is currently carrying out development studies and preparing a field development plan and environmental application with the aim of agreeing gas conditions and submitting a production right application before the exploration right expires in September 2022. .

The EPS would ensure the first production of gas and condensate from the Himlose discovery and accelerate the Block 11B/12B development schedule by using nearby existing infrastructure on the adjacent block to supply gas to existing customers in Mossel Bay. The EPS is expected to significantly reduce the capital expenditure required to achieve first production on Block 11B/12B.

The development of Block 11B/12B will have positive implications for the South African economy and will be key to facilitating the country’s energy transition beyond coal with an internal market. natural gas supply.

Africa Energy holds a 4.9% effective interest in the Block 11B/12B exploration right. The company holds 49% of the shares of Main Street 1549 Owner Limited, which holds a 10% stake in the block. TotalEnergies as operator holds a 45% stake in Block 11B/12B, while Qatar Oil and CNRI hold 25% and 20% respectively.

In August 2020, the Company announced the signing of definitive agreements to increase its effective interest in Block 11B/12B offshore South Africa from 4.9% to 10%, subject to certain consents and approvals.